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Market Monitoring - 03/05/2020
Strategic communication channel: market for the company
Although the primary role of the IR department is to communicate with investors, being able to convert one-way conversations into dialogues is where the true strategic value lies.
Investor feedback is valuable for the Company’s managers and provides a direct answer to how the company is perceived by the market. By providing details on investor concerns, IR teams can help the board of directors to gain a better sense of how the company’s strategy is being perceived (planning and execution), allowing for adjustments along the way that ensure long-term success and keep investors satisfied in the short term.
Market Monitoring - 03/04/2020
Automation of processes that improve time management
IR professionals are being pressured to deliver new ESG data, disseminate this information in a way that it reaches individual investors, take active roles in the search for new investors withing the scope of the new MIFID II legislation, and maintain a lean and efficient team. None of this is possible without the use of new technologies that help reduce the time spent on operational activities and allow a more targeted work approach. To achieve this, key resources available include: virtual roadshow platforms, pre-recorded videos for disclosing results, IR websites with automatic updating of CVM and SEC files, single-click mailing system, CRM fueled with market data, targeting intelligence tools, the use of technology that generates reports which consolidate the custodian bank’s shareholder base, as well as integration with other day-to-day tools.
Market Monitoring - 03/03/2020
Adopting standards to report ESG factors
Investors are increasingly expecting that IR teams understand environmental, social and corporate governance issues and include data on these matters in the company’s releases, websites and other communication materials. ESG has already been discussed for years but is gaining more relevance. Some companies already include ESG tables applicable to their respective industries and in accordance with the standards established by the Sustainability Accounting Standards Board.
Forbes magazine estimates that ¼ of all global AUM already analyze ESG data, which means that IR professionals must be prepared to answer questions during one-on-one meetings, increase ESG data on IR websites and deeply understand how ESG can help mitigate corporate risks.
Market Monitoring - 03/02/2020
Challenges arising from the MiFID II framework and impacts on corporate access
According to Bloomberg, the number of sell-side analysts reduced by 8% in 2019. Budget for research analysts is expected to reduce by 20% to 30% in 2020.
The MIFID II framework brings new challenges to IR teams, mainly in terms of access to institutional investors, portfolio managers and buy-side analysts, which is done directly and without intermediation by brokers/investment banks.
Companies that have lost significant research coverage must have a more proactive IR approach. The importance of the IR website along with the format and quality of the communication materials are now more important than ever. IR professionals must also be able to more effectively identify and track investors – that is, understand who is accessing the website and what they are searching for. Crossing mailing and webcast analytics with the company’s shareholder base and targeting strategy is also fundamental.
